2007

1. INDUSTRIAL CENTERS: EFFICIENT MECHANISMS FOR YOUR BUSINESS 2007

2. «severstal - metiz» - an international company producing wire and wire products, gives an opportunity to investors to organize business at its areas 2

3. Volgograd plant JSC "Dneprometiz" Cherepovets plant CARRINGSTON WIRE LIMITED LLC «Steellace» (subsidiary) LLC «UniFence» (subsidiary enterprise on production of steel mesh and mesh products) LLC «UniSpring» (subsidiary enterprise producing spring blocks for furniture industry) Orel plant LLC «UniFence» (subsidiary) LLC «UniSpring» (subsidiary) LLC «Steellace» (subsidiary enterprise producing consumer goods) TrefilARBED Russia – joint venture producing steel cord together with TrefilARBED (Arcelor / Mittal) «severstal-metiz» STRUCTURE OF THE COMPANY «Severstal-metiz» - an internationalcompany producing metal products (wire and wire products), comprises enterprises of Russia, Ukraine and Great Britain. Share of the company at the domestic market of Russia – 26%, share of sales in Ukraine – 18%. The company «Severstal-metiz» is comprisedin one of the largest holding in steel industry – JSC «Severstal» (www.severstal.com ), whichproduction capacities includesintering machines, coking plants, blast furnaces, steel straightening and rolling mills, hot-treatment lines and coating linesthat allows to produce a variety of assortment of long products and flat sections, including hot and cold-rolled steel (with coatings as well), hot-rolled and formedprofiled steel, pipes and smelt 11,6 mln. tons of steel per year. The main production capacities of JSC «Severstal» are located in Cherepovets (Cherepovetsmetallurgical plant). 3

4. In 2006 from the Russian sites of the company there was shipped 871,6 thousand tons of products, that is by 5,6 % more than the same indicator in 2005. Volume of shipments for export is 222,6 thousand tons. Growth in comparison with the level of 2005 amounted to 12,4 %. Proceeds of the Russian plants of the group amounted to 18,3 mlrd. rub. (672,2 mln. dollars). According to the results of 2006 «Dneprometiz» (Ukraine) output production for the sum of 338,9 thous. hryvnias (61,1 mln. dollars), that is by 34,2 % more than in 2005. There was shipped to the consumer 119,6 thous. tons of products. According to the results of 2006 sales of the company Carrington Wire Limited (Great Britain) amounted to 154,9 thous.tons of metal products. Growth in comparison with the indicator of 2005 amounted to 7,5 %. Proceeds in 2006 amounted to 73,4 mln.pounds sterling (136 mln.dollars). After-tax profit of the company «Severstal-metiz» in the second quarter of 2007 amounted to 473,627 mln.rub. The company has a developed sales net, comprising 25 dealers in Russia, 6 in CIS and 5 in Europe. Total volume of investments into development of enterprises of the company in 2007 amounted approximately to 712 mln. rub. The main share of investments (more than 80 %) is intended for the Russian assets. «severstal-metiz» INDICATORS Great Britain Russia Ukraine 4

5. Prerequisites for foundation of industrial centers ON THE BASIS OF THE PLANTS OF «SEVERSTAL-METIZ» Presence of non-utilized production areas Presence of high-requested and moderninfrastructureat the plants Advantageousgeographical position Human resources potentional Highinvestmentattractivityandlawinvestmentrisksofthe regions Favourable investment climate Cherepovets plant Orel plant Volgogradplant CHARACTERISTICS OF REGIONS 5

6. - Steel shaped profiles - Electrodes - Welding flux cord wire - Solid section wire for welding - Railway fasteners - Ordinary fasteners - Wire ropes - Wire • Steel fiber • - Wire nails • Low carbon wire • Steel mesh and mesh constructions «severstal-metiz» - supplier of raw material JSC «SEVERSTAL-METIZ», AS A BIG PRODUCER OF METAL PRODUCTS, IS ABLE TO PROVIDE WITH RAW MATERIAL THE MANUFATURES COMPRISED INTO INDUSTRIAL CENTERS PRODUCTS OF COLD-DRAWN STEEL WELDING MATERIALS FASTENERS HIGH CARBON LOW CARBON 6

7. VOLOGDA REGION Location – north of the European part of Russia in the temperate zone of continental climate,500 km from Moscow. Territory – 145,7 thous. km2. Population – 1349,8 thous. persons. Transport infrastructure: 0,99 thous. km – railway tracks, 13,2 thous. km – hard-top roads of general application, 1,8 thous. km – internal navigable waterways, comprising the Volga-Baltic Waterway.www.vologda-oblast.ru OREL REGION Location – center of the European part of Russia in the temperate zone of continental climate, 362 km from Moscow. Territory – 24,7 thous. km2. Population– 833,8 thous. persons. Transport infrastructure: 0,65 thous. km – railway tracks, 4,4 thous. km – hard-top roads of general application. www.vorle.ru VOLGOGRAD REGION Location – south-east of the East-European Plain in the zone of sharp continental climate,1073 km from Moscow. Territory – 112,9 thous. km2. Population– 2673,1 thous. persons. Transport infrastructure: 2,5 thous. km – railway tracks, 16 thous. km – hard-top roads, 1,5 thous. km – internal navigable waterways. www.volganet.ru «severstal-metiz» AREAS OF INDUSTRIAL CENTERS NORWAY GREAT BRITAIN SWEDEN FINLAND RUSSIA MOSCOW POLAND GERMANY FRANCE UKRAINE ROUMANIA ITALY CHARACTERISTICS OF PLANTS 7

8. Vologda region OREL REGION VOLGOGRAD REGION BACKWARD 8

9. Motor transportation Vologda region has a developed net of hard-top roads of general application with the area of 13,2 thous. km2, the basic track is considered to be the federal track М8 Moscow–Arkhangelsk. Railway traffic Railway junction is considered to be one of the largest in the North-West of Russia. Density of railway tracks of general application is 55 km per 10 thous . km2while the average level in Russia is 50 km. Water transportation On the territory of Vologda region there are two large river channels of the North-West of RF – the Volga-Baltic waterway and Severnaya locked system. The most significant is considered to be the Volga-Baltic-Baltic Waterway, which is connected with such cities as St.Petersburg and Moscow. Vologda region DESCRIPTION OF TRAFFIC CENTER To Arkhangelsk To st. Petersburg Cherepovets To Moscow OREL REGION VOLGOGRAD REGION BACKWARD 9

10. Vologda region INVESTMENT CLIMATE Creation of favourable investment climate in Vologda region is supported by legislation. The law «on government regulation of investment activity at the territory of Vologda region» defines the forms and methods for regulation of investment activity The guarantee of protection of investors' rightsandinterests Provision ofadvantagesto investors regarding income tax(decrease in tax rate, transferred to regional budget, by 4% for the period up to 5 years), property tax (exemption from tax for the period up to 5 years),transport tax (exemption from tax for the period up to 5 years) OREL REGION VOLGOGRAD REGION BACKWARD 10

11. Vologda region HR RESERVE • The number of resident population in Cherepovets amounts to 323,6 thous. persons. • The number of employees – 149 thous.persons. • Unemployment rate – 1,7% , that is less than average rate in the region • There is a developed system for technical specialists training in the region: • The base of the system for technical specialists is considered to be ChGU (Cherepovets State University) • At present time in Cherepovets there are successfully trained the specialists in 2institutes of highereducation(+ number of affiliates of out-of-town institutes of higher education), 5colleges, 9primary vocational schools • Average monthly wage of the workers of industrial enterprises of Cherepovets in 2007 amounts to 21,645 thous. rub. OREL REGION VOLGOGRAD REGION BACKWARD 11

12. Cherepovets plant «severstal-metiz» OREL PLANT VOLGOGRAD PLANT BACKWARD 12

13. 7885 m2 9534 m2 1628 m2 1413 m2 4792 m2 3269 m2 1174 m2 0,26 ha 149 m2 6400 m2 3785 m2 1705 m2 4437 m2 1216 m2 scheme OF CHEREPOVETS PLANT «SEVERSTAL-METIZ» UNITS OF INDUSTRIAL CENTERS Production workshops of JSC «Severstal-metizз» Units, offered for location of Industrial center: –production areas– 44513 m2; –administration areas– 2874 m2; –building land– 0,26 hectare Infrastructure units and auxiliary workshops Outside manufactures: OREL PLANT VOLGOGRAD PLANT BACKWARD 13

14. scheme OF CHEREPOVETS PLANT «SEVERSTAL-METIZ» WITH INDICATION OF MAIN INFRASTRUCTURE UNITS – ELECTRICAL ENERGY– NATURAL GAS– WATER SUPPLY– TREATMENT FACILITIES– HEAT ENERGY– PROTECTIVE GAS– COMPRESSED AIR – TELECOMMUNICATIONS– ACID STORAGE etc. AREA– RAILWAY – CUSTOMS TERMINAL– ADDITIONAL SERVICE– WHAREHOUSING OREL PLANT VOLGOGRAD PLANT BACKWARD 14

15. Orel region VOLOGDA REGION VOLGOGRAD REGION BACKWARD 15

16. Orel region DESCRIPTION OF TRAFFIC CENTER Motor transportation The city Orel has a developed net of highways, the basic track is considered to be federal track М2 Moscow – Simferopol. It allows to carry out round-the-clock motor transportation both by highways in the direction of Moscow, Ukraine and southern regions of Russia,and in the direction of neighbouring regions(Bryansk, Tula, Lipetsk, Kursk)in theother regions of Russia. Transit through Ukraine and Belorussia allows to deliver goods to the countries of Central and Eastern Europe. Railway traffic Orel is considered to be large railway junction, which is comprised into Orel-Kursk department of Moscow railway and allows to carry out transportations in the following directions MOSCOW– BELGOROD andBRYANSK– VORONEZH, that is in its turn gives an opportunity to deliver loads through ports of the Black and Baltic seas, as well as in the countries of Eastern and Central Europe. TO MOSCOW TO BRYANSK OREL TO BELGOROD TO VORONEZH VOLOGDA REGION VOLGOGRAD REGION BACKWARD 16

17. Orel region INVESTMENT CLIMATE Creation of favourable investment climate in Orel region is supported by legislation The law«On investment activity and state innovation policy in Orel region» The law«On investment activity in Orel region»,stipulating motivation of investment activity – advantages and privileges regarding taxation concerning payments, transferred to regional budget, special regime of investment activity In the frame of special regime there are provided advantages within the terms stipulated by the law: Regarding income tax to the local budget(up to 23%), Regarding property taxfor organizations(up to 50%) VOLOGDA REGION VOLGOGRAD REGION BACKWARD 17

18. Orel region DEVELOPMENT OF NEW WAYS TO ATTRACT INVESTMENTS At investment fair «Orel-2006», which took place in Orel on June,1–2, there was signed an agreement between the board of administration of Orel region and JSC «Severstal-metiz» The subject of the agreement is an organization of cooperation and interaction of Orel region administration and JSC «Severstal-metiz», aimed at development of the project «Industrial center «Orel», for the purpose of formation on the basis of production areas of the subsidiary «Orel plant» JSC «Severstal-metiz» of new highly efficient manufactures of industrial character In the frames of this agreement investments into development of Industrial center «Orel»will amount to 172 mln. rub. VOLOGDA REGION VOLGOGRAD REGION BACKWARD 18

19. Orel region HR RESERVE • The number of resident population in Orel amounts to 326,8 thous. persons. • The number of able-bodied citizens has increased by 14 thous. persons during the period of 2000 till 2005 • Unemployment rate – 1,8 % • There is a developed system for training of technical specialists in the region: • The base of the system for technical specialists training is considered to be Orel GTU (Orel state technical university). Orel GTU occupies 51-st position in the rating list of technical and technological institutes of higher education in Russia of Ministry of education of RF in 2005 (4-th place among institutes of higher education, comprised into ЦФО); • In the structure of Orel GTUthere is included Orel polytechnic college providing secondary and technical education; • At present time in Orel GTU the number of students amounts to 15 thous. students, getting higher technical education. Total number of teaching staff of Orel GTU amounts approximately to 2 thous. persons. • In total in the city there are 10 institutes of higher education, 16technical schools, 29vocational schools • Average monthly wage of the workers at large and medium enterprises of Orel in 2006 amounted to 7,77thous. rub. − − − VOLOGDA REGION VOLGOGRAD REGION BACKWARD 19

20. Orel plant «severstal-metiz» CHEREPOVETS PLANT VOLGOGRAD PLANT BACKWARD 20

21. 95753 m2 46314 m2 17 ha scheme OF OREL PLANT «SEVERSTAL-METIZ» UNITS OF INDUSTRIAL CENTER Production workshops of JSC «Severstal-metiz» Units, offered for location of Industrial center: production areas – 142067 m2 ; administrative areas – 20627; Building land– 17hectare (expansion due to land belonging to local authorities, – 40 hectare) Infrastructure units and auxiliary workshops Outside manufacturers Departments transferred for outsourcing CHEREPOVETS PLANT VOLGOGRAD PLANT BACKWARD 21

22. scheme OF OREL PLANT «SEVERSTAL-METIZ» WITH INDICATION OF MAIN INFRASTRUCTURE UNITS – TELECOMMUNICATIONS – SAFETY SERVICES – ACID STORAGE etc. AREA – RAILWAY – WAREHOUSING – CUSTOMS TERMINAL – ADDITIONAL SERVICE – ELECTRIC ENERGY – NATURAL GAS – WATER SUPPLY – TREATMENT FACILITIES – HEATING ENERGY – PROTECTIVE GAS – COMPRESSED AIR CHEREPOVETS PLANT VOLGOGRAD PLANT BACKWARD 22

23. Volgograd region VOLOGDA REGION OREL REGION BACKWARD 23

24. Volgograd region DESCRIPTION OF TRAFFIC CENTER To Moscow Motor transportation Volgograd has a developed net of highways, the main track is considered to be the federal track М6 Moscow– Astrakhan. It allows to carry out round-the-clock motor transportations both by highway in the direction of Moscow, Ukraine, Kazakhstanand the southern regions of Russia, and in the direction of neighbouring regions (Rostov, Astrakhan, Voronezh),republic of Kalmykia as well as in the other regions of Russia. Total length of highways– more than 16 thous. km (53 % are the hard-top roads of general designation). Railway traffic On the territory of the region there are important railway tracks. Total length of railway tracks amounts to 2,5 thous.km. Water traffic The lower reaches of the Volga and Don, connected with the Volga-Don navigation channel are favourable for transportation through the region and ports of the European countries of different goods to the zones of African navigation, the Near East and Middle East. Total length of internal waterways is – 1,5 thous.km. To samara volgograd Outlet to the Caspian sea To krasnodar VOLOGDA REGION OREL REGION BACKWARD 24

25. Volgograd region INVESTMENT CLIMATE Creation of favourable investment climate in Volgograd region is supported by legislation The law «On innovation activity and state innovation policy in Volgograd region» The law «On innovation activity in Volgograd region», stipulating motivation of innovation activity – advantages and privileges regarding taxation in respect of payments, transferred to the regional budget, special regime of investment activity VOLOGDA REGION OREL REGION BACKWARD 25

26. Volgograd region HR RESERVE • The number of resident population in Volgograd amounts to 1027 thous. persons. • Number of employees – 383,3 thous. persons. • Rate of unemployment – less than 1,0 %regarding economically efficient population • There is a developed system for training of technical specialists in the region: • The basis of the system for training of technical specialists is considered to be VGTU (Volgograd state technical university) • - At present time in Volgograd specialists are successfully taught in 17institutes of higher education, 34vocational schools • Average monthly wage of workers of industrial enterprises in Volgograd in 2007 amounts to 11 thous. rub. VOLOGDA REGION OREL REGION BACKWARD 26

27. Volgograd plant «severstal-metiz» CHEREPOVETS PLANT OREL PLANT BACKWARD 27

28. 2852 m2 0,2 ha 1611 m2 48895 m2* 28006 m2* 4352 m2 0,2 ha 0,3 ha 4466 m2 9224 m2 2008 m2 681 m2 4830 m2 839 m2 2 ha 4875 m2 3757 m2 1 ha 3165 m2 1987 m2 38674 m2 scheme OF VOLGOGRAD PLANT «SEVERSTAL-METIZ» UNITS OF INDUSTRIAL CENTER Production workshops of JSC «Severstal-metiz» Units, offered for location of Industrial center: – production areas 143 891 m2; –administrative areas 16 331 m2; –building land: 3,7 hectare Infrastructure units and auxiliary workshops Outside manufacturers: * The units will be offered for sale in 2009-2012. CHEREPOVETS PLANT OREL PLANT BACKWARD 28

29. scheme OF VOLGOGRAD PLANT «SEVERSTAL-METIZ» WITH INDICATION OF MAIN INFRASTRUCTURE UNITS – ELECTRIC ENERGY– NATURAL GAS– WATER SUPPLY– TREATMENT FACILITIES– HEATING ENERGY– PROTECTIVE GAS– COMPRESSED AIR– TELECOMMUNICATIONS– ACID STORAGE etc. AREA– RAILWAY– WAREHOUSING– ADDITIONAL SERVICE CHEREPOVETS PLANT OREL PLANT BACKWARD 29

30. Advantages for investors FOR FOUNDATION OF PRODUCTION ON THE BASIS OF INDUSTRIAL CENTERS The existing infrastructure allows to reduce the cost and terms of projects realization Investments into infrastructure by the proprietors give additional economical benefit for investor Cooperation with a large industrial company guarantees stability and reliability of business and interaction on high level of business-culture development Synergies due to enlarging the technological chains of «Severstal-metiz» and manufactures, comprised into Industrial centers Favourable investment climate in the regions Support by the administration in attraction of foreign and domestic investors Experience of JSC «Severstal-metiz» in realization of joint investment projects 30

31. Contact person: Tatyana Nechaeva manager of property direction tel. (4862)390-535 fax (4862) 391-305 e-mail:nechaeva@severstalmetiz.com BACKWARD